What’s Hot and What’s Not in Outsourcing

What’s Hot and What’s Not in Outsourcing
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As the BPO industry enters 2019, the big tech industries seek long-term strategic associations rather than short-term solutions. The days of inexpensive remedies are over when outsourcing was merely a sideline affair.

The guide will take through the current trends in the IT outsourcing industry.


Competitive Outsourcing is in

The hottest trend is the increased adoption of business process-as-a-service model along with smart automation of processes by organizations. Such steps enable IT services integration and true vendor skepticism, which in turn, allow for the adoption of the competitive sourcing model.

Leveraging the model in which IT services are integrated and the management teams allow clients to involve champion and challengers in a seamless fashion is in. They make use of shared technologies, processes and apparatuses.

Jack-of-all-Trades, Master of None Approach is out

The era of IT specialized services is very much in and long gone are the days in which companies in the technology sector offered just about everything to customers. Since the world of tech is limitless and so is the extent of services you can offer to others, it is a good option to stop at what you do best and leave the rest.

The large IT services providers take the time to decide what they are going to offer to potential clients. The saturation in the digital services market compels companies NOT to be the masters at everything.

Every element of business process outsourcing speaks of specialization and to achieve that, the companies are to align their services for core markets. They will focus on a few of their strengths and leave the rest of the work to other companies.

Transformation is the New Business Opportunity

Transformation doesn’t remain a buzzword anymore but instead turns into a business opportunity in 2019. IT leaders are looking to shift their platforms to something more adaptable and accessible with automation, cloud services, and modern ERPs.

Going deeper into the basics of business technology, we can expect to see a rise in consulting services to help clients go through the re-platforming phase.

Pay Less Attention to Traditional Metrics: How to Quantify Services?

That is the biggest challenge to businesses as we pass through the transformation phase. Business process-as-a-service delivery models are in and driving the IT sector to reshape their strategies towards business consumable metrics and work structures.

For instance, when it comes to workplace requirements, the organizations are asking for experience-level agreements or XLAs, explains Yugal Joshi, VP IT services at Everest Group.

Metrics like Customer Experience Index and more become the deciding factor for the performance of an outsourcing partner. We all must be ready for that as BPO services providers.

Robotic Process Automation (RPA) is in

The automation part of the BPO industry is going to lead the revolution of Robotic Process Automation.

What is it – RPA?

The routine processes of repetition will turn into the hands of robots and human employees will interact with the customers at a personal one-on-one level. It is going to cut-down cost and drive efficiency to the apex.

The automation industry, as an estimate, is going to reduce the labor component by 40% on an average, says Steve Hall, a partner at ISG.

Robotic and AI reduces the cost of labor, provided the industry meets the initial investment requirements.

What Happens in a Call Center Stays in a Call Center?

Outsourcing, as a definition, means dealing with the non-core operations of a business. Hence, when you outsource the core operation to an outsourcing company, businesses usually have to face terrible consequences. That is not going to happen in 2019. Moreover, we will see out-of-the-box integrated solutions to solidify in 2019.

The call centers are to do more in the current year as specialized tasks come to the service desks. As a general routine, the service desks are not equipped to handle tedious, intricate or critical tasks. However, the age of achieving complex tasks through an intelligent infrastructure layer is here. It is going to bring solutions to difficult problems at the service desks.

We saw a couple of trends that will be a part of 2019 and some of them are only going to cool down as the time passes by. To know the latest outsourcing trends, follow IPS USA on LinkedIn.